Budget airline easyJet set for bumper profits

The Luton-based carrier defied concerns the recent heatwave will hit last-minute getaways by saying almost three-quarters of its summer seats are booked

Shares in easyJet soared to a record high yesterday
Shares in easyJet soared to a record high yesterday

Shares in easyJet soared to a record high yesterday as the budget airline said annual profits will smash City forecasts with a surge of up to 50%.

The Luton-based carrier defied concerns the recent heatwave will hit last-minute getaways by saying almost three-quarters of its summer seats are booked.

Easyjet said rising passenger numbers and strong third-quarter revenues will mean pre-tax profits of up to £480m for the year to the end of September compared with £317m a year earlier. Shares went 8% higher before closing 3.82% up at 1387p.

Revenues for its third quarter to the end of June surged 10.5% to £1.14bn and passenger numbers increased 2.6% to 16.4m. Revenues per seat grew by 6.1% to £61.44.

Meanwhile, cut-price deals and strong demand from Glastonbury festival-goers helped the coach arm of National Express. The largest operator of scheduled coach services in the UK took 28,000 people to the festival.

Coach passenger numbers grew 9% to 8.3m in the six months to June 30, driven by a 16% rise in airport-based journeys. Coach profits recovered 2.4% to £7.8m. Pre-tax profits for the group, which has operations in North America as well as in UK bus and rail, were 14% lower at �34.3m.

 

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